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Living in Crisis: Why Tenants Are Now Paying the Price on the Balearic Islands

How Holiday Rentals Affect Housing in Mallorca

Holiday rentals can shrink Mallorca's long-term housing supply and push rents higher for residents.

Published: April 21, 2026
Living in Crisis: Why Tenants Are Now Paying the Price on the Balearic Islands

Answer

How does short-term holiday rental affect housing in Mallorca?

Short-term holiday rentals can take homes out of the long-term rental market, which reduces supply for local residents. In Mallorca, that adds pressure to an already tight housing market and can make it harder for tenants to find stable, affordable housing. The effect is not the only cause of the crisis, but it is an important part of it.

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